Accident & Sickness Insurance
Beware of cheap imitation Income Protection policies like Accident and Sickness Insurance or also known as Sickness and Accident Insurance.
Accident and Sickness Insurance is similar to Income protection i.e. provides up to 75% of your monthly gross income as a benefit if you are unable to work due to sickness or injury. Although it is usually offered by general insurance companies and bundled with a Business Insurance pack.
However, if the Insurance Company decides that you pose a great a risk (usually due to you just making a claim on your policy) they can elect to not offer you insurance from the next renewal date. These are known as cancelable contracts and we do not recommend these.
However, with Income Protection once the policy has been underwritten and accepted the Insurer cannot cancel the cover (as long as you fully disclosed all your previous medical conditions) , even if a claim is made and/or your circumstances change like a new higher risk occupation and or your health deteriorates.
Sickness & Accident Cover was considerably cheaper to purchase, easier to obtain (as there were no medicals or health questions) and Sickness & Accident could cover certain occupations that Income Protection would not cover.
Although recently the difference in premiums between the two types of policy has significantly reduced due to a change in underwriting guidelines (Life Insurers are now willing to take on more cases and continual improvements in medical science).
For more information on either Income Protection or Sickness and Accident Cover speak to one of our advisors.